Industry figures say that lenders have yet to make decision on whether an intermediaries old or new network will receive the proc fees on transitional mortgage cases.
Stephen Atkins, director of the Freedom Network, cited an example of such a situation. “If, for example, a broker is currently an MCCB member and uses Mortgage Next as a its club but then joins Legal & General from 31 0ctober. The question which lenders have yet to answer is who will get paid regarding cases that were arranged before ‘Mortgage Day’ but don’t actually come through until after regulation? Will the old club lose out? Lenders need to come out and confirm what they’re doing about this.”
Matthew Bright, managing director of Optoma, said: “We would expect the old club to get paid. If not, then 50 or 60 packager businesses could go bust if the new network received the commission. They wouldn’t be able to afford to lose this money.”
Tim Sturley, head of business development at Mortgage Express, said: “We would pay the network with which the case was originally arranged through. We do not think many lenders would opt to pay the new network.”
